SIFY vs REDF
Even though I am long both stocks, it is interesting to compare the two.
At this time SIFY is a much smaller company than REDF. REDF generates about 4x the revenues of SIFY (online and interactive services. Not counting the low margin Internet access business of SIFY). However, market cap wise, SIFY is close to $400M, and REDF about $600M.
SIFY is a very well known brand name in India. From the parent Satyam, Sify has grown to be a household name, synonymous with technology and Internet. The ubiquitous SIFY Internet Cafes in India (thousands of them, and they are growing like weed...) give the company a tremendous brand leverage, which I am sure the market is factoring in-witness the new highs every day on the stock.
REDF for its own part has 30M email subscribers. That is an asset hard to beat. These guys need Rediff, and will take advertisements, anything to be able to keep that email address. Yahoo is a master of that strategy, and some would argue, AOL is the ultimate-it all started with "U've got mail". REDF also is super-innovative: It came up with VOIP, and pay4clicks, etc. Good revenue generators for the company today, and even more so in the future, I believe.
Both companies are great-but for people who haven't been to India, or not been there lately, the brand effect of SIFY is not obvious. Take it from someone who spends some months in India every year: SIFY has an amazing brand.
Sanjay John G.
At this time SIFY is a much smaller company than REDF. REDF generates about 4x the revenues of SIFY (online and interactive services. Not counting the low margin Internet access business of SIFY). However, market cap wise, SIFY is close to $400M, and REDF about $600M.
SIFY is a very well known brand name in India. From the parent Satyam, Sify has grown to be a household name, synonymous with technology and Internet. The ubiquitous SIFY Internet Cafes in India (thousands of them, and they are growing like weed...) give the company a tremendous brand leverage, which I am sure the market is factoring in-witness the new highs every day on the stock.
REDF for its own part has 30M email subscribers. That is an asset hard to beat. These guys need Rediff, and will take advertisements, anything to be able to keep that email address. Yahoo is a master of that strategy, and some would argue, AOL is the ultimate-it all started with "U've got mail". REDF also is super-innovative: It came up with VOIP, and pay4clicks, etc. Good revenue generators for the company today, and even more so in the future, I believe.
Both companies are great-but for people who haven't been to India, or not been there lately, the brand effect of SIFY is not obvious. Take it from someone who spends some months in India every year: SIFY has an amazing brand.
Sanjay John G.
1 Comments:
SIFY is a better company than Rediff. Sell all your REDF, buy SIFY> $$$
LM Bangalore
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